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(Solved): Angela Lopez owns and manages a consulting firm called Metrix, which began operations on December 1. ...
Angela Lopez owns and manages a consulting firm called Metrix,
which began operations on December 1. On December 31, Metrix shows
the following selected accounts and amounts for the month of
December.
| Cash | $ 8,200 | Common stock | $ 12,400 |
| Accounts receivable | 3,600 | Dividends | 2,100 |
| Notes receivable | 2,600 | Consulting revenue | 12,500 |
| Office supplies | 1,600 | Rental revenue | 600 |
| Prepaid insurance | 1,100 | Salaries expense | 3,100 |
| Equipment | 4,500 | Rent expense | 2,100 |
| Accounts payable | 1,220 | Advertising expense | 420 |
| Notes payable | 2,500 | Utilities expense | 220 |
| Unearned revenue | 320 |
Required:
1. Prepare a December income statement for the
business.
2. Prepare a December statement of retained
earnings. The Retained Earnings account balance at December 1 was
$0.
3. Prepare a December 31 balance
sheet. Hint: Use the Retained Earnings account
balance calculated in part 2.
Prepare a December income statement for the business.
Complete this question by entering your answers in the tabs b Prepare a December statement of retained earnings. The Retained Earr
Prepare a December 31 balance sheet. Hint: Use the Retained Earnings account balance calculated
Expert Answer
Sol :- 1) Metrix Income Statement Particulars Amount($) Amount($) Revenues: Consulting revenue 12,500 Add : Rental revenue 600 Total revenue 13,100 Expenses: Salaries expense 3,100 Utilities expense 220 Adv